Cannabis producer Tilray Brands (NASDAQ:TLRY) reported its first-quarter earnings for fiscal 2023 on
Friday. For the period ending Aug. 31, the company posted net revenue of $153.2 million, which
declined 9% year over year. The top line was also slightly less than the $153.3 million that Tilray
reported in Q4. Its distribution business accounted for 40% of revenue, followed by the cannabis
segment at 38%, alcohol and beverage was 13% of the top line, and its wellness business made up the
remaining 9% of revenue.
Overall, Tilray's net loss of $65.8 million in Q1 increased by 90% from the prior-year period as the
company incurred a significant increase in non-operating expenses during the period. However, on an
adjusted EBITDA basis, Tilray reported a profit of $13.5 million, which was the 14 th straight period that it
has been in the black on that metric. CEO and Chairman Irwin Simon said that Tilray is, "now the leader
in net cannabis revenue worldwide, highlighted by medical cannabis leadership globally and adult-use
cannabis market share primacy in Canada."
The company continues to try and focus on bringing its costs down, with management noting that its
bottom line should continue to improve; this fiscal year, the company forecasts that its Adjusted EBITDA
profit will be between $70 million and $80 million. Tilray is also projecting that it will generate positive
free cash flow. In Q1, its free cash was a negative $47.8 million – less than half of the negative $101.8
million it reported a year earlier.
Over the past 12 months, Tilray's stock has fallen 70% in value.
